Answer: $53.94
Explanation:
Current share price is the present value of the dividends for the next 3 years and the terminal value in year 3.
Terminal value = D₄ / ( required return - growth rate)
= (2.35 * 1.22³ * 1.05) / (12 % - 5%)
= $64
D₁ = 2.35 * 1.22 = $2.867
D₂ = 2.867 * 1.22 = $3.49774
D₃ = 3.49774 * 1.22 = $4.2672428
Share price = (2.867 / (1 + 12%)) + (3.49774 / 1.12²) + (4.2672428 / 1.12³) + (64/1.12³)
= $53.94
Answer:
A. $8,000
Explanation:
Stockholders Equity Includes the Add-in-capital par value, Add-in-capital excess value of Common and Preferred, Net income accumulated value and dividends.
Ending Stockholders Equity = Beginning Stockholders Equity + Income for the period - Dividend paid During the period
$32,000 = $36,000 + $4,000 - Dividend paid During the period
$32,000 = $40,000 - Dividend paid During the period
Dividend paid During the period = $40,000 - $32,000
Dividend paid During the period = $8,000
Answer:
A. 7.08%
B. 6.49%
C. 5.95%
D. 6.71%
E. 7.34%
The correct option is B,6.49%
Explanation:
The return that the investor would earn is the yield to maturity of the bond which is calculated using rate formula in excel as shown thus:
=rate(nper,pmt,-pv,fv)
nper is the number of coupon payments the bond would receive which 5 since the bond can be called in 5 years
pmt is the annual coupon of $85
pv is the current market price of $1,120
fv is the call price in 5 years which is $1,050
=rate(5,85,-1120,1050)=6.49%
Answer:
The correct answer to the following question is option B) Exhaustion .
Explanation:
The general adaptation syndrome can be described as 3 stage response , that body has to stress. These are alarm reaction, resistance and exhaustion. Exhaustion is the third stage in the general adaptation syndrome, where the body has already lost its energy resources by continuously trying but the body is not able to recover from the first alarm reaction stage. In this stage body is no longer able to fight the stress.
